MILAN — Silk-FAW, a enterprise between Chinese language automaker FAW and U.S.-based engineering and design agency Silk EV, has picked Reggio Emilia, in Italy’s “Motor Valley,” to construct its electrical and hybrid luxurious sports activities vehicles.

The three way partnership has pledged to take a position greater than 1 billion euros ($1.2 billion) over three years, however has up to now not offered additional monetary particulars.

It’s creating vehicles below the Hongqi model, which it can manufacture in Italy and China. Its first mannequin, the plug-in hybrid Hongqi S9, was unveiled last month at the Shanghai auto show. The automotive was designed by Volkswagen Group’s former styling chief, Walter de Silva, who’s the three way partnership’s design boss.

“That is an iconic space for your entire automotive community and a great location to satisfy our logistic and manufacturing wants for the Hongqi S Sequence,” Silk-FAW Chairman Jonathan Krane stated in an announcement on Monday.

Italy’s Motor Valley is house to a number of the nation’s greatest identified luxurious carmakers, together with Ferrari, Lamborghini, Pagani in addition to motorcycle maker Ducati.

Manufacturing on the Reggio Emilia web site is predicted to begin initially of 2023, stated Silk-FAW, which final week appointed former Ferrari CEO Amedeo Felisa as a particular adviser.